Introduction
The US International Securities Exchange (ISE) is one of the largest exchanges in the US. Trading on the ISE covers a wide range of instruments and markets. The ISE is divided into three tiers: the US Options Exchange, US International Options Exchange, and the US Market Maker Exchange. All three tiers provide traders with a wide range of opportunities for trading equities, ETFs, covered warrants, options and futures across 35 different asset classes.
History
The ISE was established in 2001 at the fifth largest options exchange in the US. The goal of the exchange was to offer a reliable and cost-saving way for traders to access different markets. The ISE was the first US exchange to offer penny increments on option trades and provided market participants an array of competition and cost savings.
In 2003, the ISE merged with two other exchanges, the American Stock Exchange (AMEX) and the Philadelphia Stock Exchange (PHLX). This merger created the first “national” options market. Through this merger, the ISE was able to offer more liquidity and competition across a wide range of products.
In 2006, the ISE continued to grow and added another exchange, the International Securities Exchange (ISE Gemini). This new platform enabled the ISE to offer traders a much more diverse set of products, allowing for more trading opportunities.
Services
The ISE offers a wide range of services for market participants. These services include:
● Trading – The ISE provides a wide range of trading opportunities across multiple asset classes. This includes, but is not limited to, stocks, ETFs, options, futures, covered warrants and options spreads.
● Market Making – The ISE provides an electronic market making facility for participating qualified market makers. This service enables market makers to provide liquidity in equities, ETFs and options contracts.
● Options Trading – The ISE offers markets in which options may be traded. This includes options on stocks, ETFs, currencies and futures.
● Market Data – The ISE provides market data on all traded instruments. This includes, but is not limited to, real-time prices, a market depth list and back office data.
● Trading Platforms – The ISE offers a wide range of trading platforms for the convenience of its clients. These include, but are not limited to, Platforms from Interactive Brokers, TradeStation and WebTrader.
Future Outlook
The US International Securities Exchange is in a favorable position to remain a leader in the US options market. With a wide range of products, an efficient market making system and a suite of trading platforms, the ISE is positioned to remain an attractive destination for market participants. Furthermore, with a global presence and regulatory approval, the ISE has the potential to be a leader in the global options trading industry.
Conclusion
The US International Securities Exchange is one of the top options exchanges in the US. The exchange offers a wide range of instruments and markets across multiple asset classes, as well as robust market making and trading platform services. With a global presence and approval from financial regulators, the ISE has the potential to become a leader in the global options market.